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Unit 5: The Competition Act, 2002

Procedure for Enquiry on Complaints under Sec.19 Notes

Sec.19 provides as follows:
1. On receipt of a complaint or a reference from the Central Government or a State Government
or a statutory authority or on its own knowledge or information, under Sec.19, if the
Commission is of the opinion that there exists a prima facie case, it shall direct the Director
General to cause an investigation to be made into the matter.
2. The Director General shall, on receipt of the direction submit a report on his fi ndings within
such period as may be specified by the Commission.

3. Where on receipt of a complaint under Sec.19, the Commission is of the opinion that there
exists no prima facie case, it shall dismiss the complaint and may pass such orders as it

deems fit, including imposition of costs, if necessary.
4. The Commission shall forward a copy of the report to the parties concerned or to the
Central Government or the State Government or the statutory authority, as the case may
be.
5. If the report of the Director General relates on a complaint and such report recommends
that there is no contravention of any of the provisions of this Act, the complainant shall be

given an opportunity to rebut the findings of the Director General.
6. If, after hearing the complainant, the Commission agrees with the recommendation of the
Director General, it shall dismiss the complaint.
7. If, after hearing the complainant, the Commission is of the opinion that further enquiry is
called for, it shall direct the complainant to proceed with the complaint.

Procedure for Investigation of Combination

Sec.29 provides as follows:

1. Issue of Notice: Where the Commission is of the opinion that a combination is likely to
cause, or has caused an appreciable adverse effect on competition within the relevant
market in India, it shall issue a notice to show cause to the parties to combination calling
upon them to respond within thirty days of the receipt of the notice, as to why investigation
in respect of such combination should not be conducted.

2. Commission: If it is prima facie of the opinion that the combination has, or is likely to have,
an appreciable adverse effect on competition, it shall, within seven working days from the
date of receipt of the response of the parties to the combination, direct the parties to the
said combination to publish details of the combination within ten working days of such
direction, in such manner, as it thinks appropriate, for bringing the combination to the
knowledge or information of the public and persons affected or likely to be affected by
such combination.
3. Written Objection: The Commission may invite any person or member of the public,

affected or likely to be affected by the said combination, to file his written objections, if

any, before the Commission within fifteen working days from the date on which the details
of the combination were published under (2).

Task How will you decide a case where the members of a bench differ in their
opinion? Suggest.

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